Correlation Between REVO INSURANCE and Siamgas

Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and Siamgas at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining REVO INSURANCE and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between REVO INSURANCE SPA and Siamgas And Petrochemicals, you can compare the effects of market volatilities on REVO INSURANCE and Siamgas and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in REVO INSURANCE with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and Siamgas.

Diversification Opportunities for REVO INSURANCE and Siamgas

-0.04

Correlation Coefficient

REVO INSURANCE  Siamgas

Good diversification

The 3 months correlation between REVO and Siamgas is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and Siamgas And Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas And Petroche and REVO INSURANCE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on REVO INSURANCE SPA are associated (or correlated) with Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas And Petroche has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and Siamgas go up and down completely randomly.

Pair Corralation between REVO INSURANCE and Siamgas

Assuming the 90 days horizon REVO INSURANCE is expected to generate 1.39 times less return on investment than Siamgas. But when comparing it to its historical volatility, REVO INSURANCE SPA is 2.64 times less risky than Siamgas. It trades about 0.04 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Siamgas And Petrochemicals on December 21, 2024 and sell it today you would lose (1.00) from holding Siamgas And Petrochemicals or give up 5.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

REVO INSURANCE SPA  vs.  Siamgas And Petrochemicals

REVO INSURANCE SPA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in REVO INSURANCE SPA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, REVO INSURANCE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Siamgas And Petroche

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Siamgas And Petrochemicals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Siamgas may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with REVO INSURANCE and Siamgas

The main advantage of trading using opposite REVO INSURANCE and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, Siamgas can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Siamgas will offset losses from the drop in Siamgas' long position.

The idea behind REVO INSURANCE SPA and Siamgas And Petrochemicals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.